Managing Subcontractor Defaults: Early Warning Signs and Response Playbook

A subcontractor default — when a sub walks off the job, goes bankrupt, or simply stops performing — is one of the most disruptive events on any construction project. The damage is proportional to how quickly the GC recognizes what's happening and responds. Here are the early warning signs that typically precede a default, the response playbook for when one happens, and the preventive measures that reduce exposure.